Have you finally decided to get involved in day trading as a hobby, second job, or main way of earning a living? If so, you’ve chosen an almost ideal time to begin the journey. That’s because there are all sorts of free resources for studying the markets, practicing actual trading techniques, and acquiring a solid foothold on all the key skills you need to get off the starting block. What are the first things you should be doing? Here’s a short checklist of tips that will guide you as you take on this new challenge.
Be Patient as You Learn the Basics
Make a commitment to read as much as you can on the topic, particularly if you intend to day trade forex, or foreign exchange. There are plenty of unique terms and concepts. Even if you have experience with stocks and other types of securities, you’ll need to get a good grasp of all the unique language and ways of working in a single-session timeframe, which is what day trading is all about. Be patient, and realize that you should always be adding to your knowledge base as you progress.
Find a Broker That Suits Your Needs
Not all brokers are alike. Search for one that is licensed to work in your geographic area, is not billed as offshore, caters to newcomers, and allows for easy account setup. easyMarkets is one example of a beginner-friendly broker that provides educational content and proprietary risk management tools to help new traders start more effectively. Whatever broker you choose, take time at this stage to try out several candidates, looking closely at aspects of their offerings like customer service, fees, commissions, platforms, reputations, and anything else you can discover about their way of assisting brand-new clients. Remember to read online reviews, being careful to root out websites that post fictitious reviews or paid ones. It should take you less than a half-hour to locate a few reliable review sites. Read what actual customers have to say about the brokers who are on your radar or short list. Don’t put faith in any single review, but try to gain an overall feel for the brokerage firms by reading multiple assessments.
Open Your Account
Here’s where things get real. Follow instructions carefully when the time comes to open your account. Be certain to meet account value minimums if there are any, transmit funds according to the guidelines, fill out all the necessary forms, and resist the urge to begin buying and selling immediately. One of the advantages of day trading forex is that you don’t have to deal with high account minimums.
Try Out Several Trading Platforms
Opt for a trading platform that offers clear-cut functionality to beginners. Avoid highly complex versions that are explicitly designed for experienced folks. If in doubt, consult a customer service rep and ask what platforms are best for new account holders. For example, easyMarkets provides the easyTrade platform, a simplified trading experience that allows trading with limited risk, unlimited potential, no margin and zero spreads.
Practice on a Simulator
Practice is at the core of every new skill, and this one is no different. The best part is that nearly all the top brokers offer simulators so you can hone your craft before hitting the open road. What can a sim do for you? Lots of things. For starters, it guides you through the order placement process with ease. Then, you use fake money to make trades. This exercise accomplishes two things: you gain a thorough understanding of the multiple types of orders, and you get rid of the jitters that many first-time traders experience.
